Does anyone have any experience with down payment partner for buy and hold deals? We have someone who is interested in working with us but is looking for more than an 8% return on their investment.
How it works with us is the investor would front the down payment and we would basically sign a loan that would repay that money in four years at 8%per year. They would have a lien on the property just like the bank. This is the worst case scenario for that investor. We typically aim to find deals that are below market that we refinancing with a private lender after the property has been rented for 90 days. At that time the investor gets their money back plus 8% and we would go into another property with them.
Depending on the time of year the property is purchase we could reuse that investors down payment up to 3 times per year.
To get to the point, we have an investor who is interested but wants a portion of the cash flow for the property in addition to the 8%. Has anyone ever offered this?
Looking for ideas how some of you guys pay back your down payment partners. Is 8% not enough?
How are you getting the loan for the property if you don't have the down payment yourself?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing